New Delhi, Aug. 29: The CPM and the CPI appear to have echoed the Centre’s position that international factors, not the food security bill, are behind the rupee’s plunge.
The Left parties’ assessment came ahead of a statement that the Prime Minister will make tomorrow on the situation after a united Opposition demanded one in Parliament today while slamming the government’s handling of the currency’s plunge.
The rupee had plunged below 68 to a dollar yesterday — a day after the food security bill was passed by the Lok Sabha — though it rebounded sharply today to close above the 66 mark.
The CPM outlined its evaluation in mouthpiece People’s Democracy. Its editorial argued that the rupee’s woes stemmed from “international uncertainties” and attacked those who sought to link the problem to the bill aimed at “feeding the hungry”.
“The Indian neo-liberal reformers overlook the fact that various currencies of developing countries have seen a sharp fall due to international uncertainties. The Indian rupee has fallen around 20%. The South African rand has done worse, falling by nearly 23 %.”
The editorial criticised sections of industrialists and corporate leaders for raising an “inhuman war cry” over the food bill.
The CPI took a similar line, with general secretary Sudhakar Reddy describing arguments linking the rupee to the food bill as a “wrong interpretation”.
“The downfall of the rupee has been taking place for over three months”, Reddy said in a statement that termed the food plan a “patriotic act”.